The story of Tasmania’s housing market over the last decade would be a horror story for many. As the election is approaching, this action is needed urgently. The state’s median house value since June 2015 has almost doubled. It skyrocketed from $315,688 to a staggering $609,265 by June of 2025. This sharp increase has left many residents struggling to find affordable housing, prompting various political parties to propose differing solutions.
In addition, local residents are tired of the removal of affordable housing. This impacts individuals such as Amelia Bird, who spends 98% of her income on rent. With housing prices through the roof, saving for that deposit has become a challenge that’s impossible for many. SQM research shows that Hobart’s rental vacancy rate is a paltry 0.6 percent. This dangerously low number reflects the continuing crisis-level lack of available rental homes. Priority applicants for social housing are now waiting an average of 97 weeks, further deepening the crisis.
Political Responses to Housing Demands
In response to the escalating housing crisis, the Tasmanian Liberal Party has pledged to build 10,000 social and affordable homes by 2032. To date, they have built 4381 homes towards this pledge. The party has a lot of fun things planned out, so stay tuned! Further, they’ll lift the first home buyers’ grant to $30,000 to get new buyers into the market.
Other parties have presented alternative strategies. The Greens’ platform includes an immediate national ban on new whole-home short-stay conversions. They make the case that these practices are aggravating the housing crisis. Equitable development Ben Bartl advocates for a rent-based approach similar to Canberra’s. Under this model policy, no-cause rent increases are capped at the Consumer Price Index (CPI) plus ten percent. He highlights that “every time rents go up, more and more people have to apply for social housing.”
Tasmania’s union of renters supports the need for more homes to be built to keep up with rising demand. Finally, they argue that the policies we have on the books today aren’t enough and demand urgent reforms to turn the tide of this crisis.
Personal Impact of Housing Affordability
For many newly displaced residents — just ask long-time resident Amelia Bird — the fight for affordable housing is a story unfolding every day. She recalls being part of a cooperative in Hobart that had around 15 different households in it. When rent is predicated on income that burden becomes a whole lot more feasible. Having lived in two co-ops in Tasmania, I found the housing really affordable because your rent is based on your income,” Bird described.
Even though she would love to own a home in Tasmania, Bird admits she’s not optimistic about being able to do that any time soon. The rising costs of living compound her challenges: “It’s become increasingly difficult for people to keep a roof over their head but juggle the other costs with housing including keeping the lights on and putting food on their table,” Bartl noted.
Residents are sounding the alarm and pressing for greener, healthier solutions. David proposes: “Stop suburban sprawl. Build more high-density housing and improve public transport,” suggesting that a focus on urban development could alleviate some pressure from the housing market.
Broader Implications and Future Outlook
Housing is not just a personal, individual problem, it’s a systematic crisis. One-third of Australian households are now renters, highlighting the urgent need for fair and sustainable housing policies. As the national cabinet acknowledged two years ago, Australian renters need stronger rights. There is a growing consensus among Americans, including a majority of Democrats, that more action is needed.
Anne suggests placing a levy on unoccupied houses: “Holiday homes and Airbnb should attract additional taxes,” emphasizing that unutilized properties contribute to the housing shortage. Worries over the availability of social housing are skyrocketing. Statistics reveal that social housing is completely unable to meet the growing needs of a wider public.
As Tasmania heads into election season, the clamor for affordable housing continues to increase. Residents and affordability advocates are hopeful that housing affordability will be a major priority in this extended legislative session. The next state election has the potential to be a critical turning point in determining Tasmania’s housing trajectory.
